Officials with Kentucky American Water denied a request from Lexington city leaders to attend Tuesday's Urban County Council meeting.
The Council sent a letter to Kentucky American, asking them to come explain their request for a rate hike.
Kentucky American said in a statement that it won't be sending representatives to the council meeting.
The water company says the Kentucky Public Service Commission has exclusive jurisdiction over rate hikes, and it will answer questions during the hearings held there.
Lexington Mayor Jim Newberry called Kentucky American's decision not to attend the Council meeting "regrettable."
In a statement, the mayor said, "I believe this 37.5 percent rate increase request is excessive and will impose a hardship on many citizens."
The mayor also said the city will "staunchly" oppose the rate increase.